Things To Know For The Prospective Investors of Super-Mai Hydropower; IPO Opens From Today For Project-Affected Locals and Nepalese Employed Abroad
Wed, Dec 7, 2022 9:02 AM on IPO/FPO News, Latest,
Company Profile:
Super-Mai hydropower project Ltd. was established in the year 2071, backed up by leading persons in hydropower developers, finance, and industrial sector with the sole purpose of generating energy in a safe, cost-effective, reliable, efficient, and environmentally sound manner using state of art technologies. The Company aims to generate and supply energy from various sources, mainly hydropower. In order to pursue this goal, the Company envisages organizing and utilizing the financial and technical capabilities available within the country to construct projects one after another to contribute to whatever extent possible to the energy need of the nation and assure an attractive return to the investors. The first (pilot) project of Super-Mai Hydropower Ltd. is the Super-Mai hydropower project (7.8MW). The COD of which is 2075 Kartik 11. It earned a profit in FY 2076/77 and 2077/78. It distributed dividends of 7.5% and 11.5% dividend in the past two years.
About the issue:
Supermai Hydropower Limited will be issuing its IPO to the project-affected locals of Ilam District and Nepalese citizens working abroad from today i.e. 21st Mangsir, and close on 6th Poush, 2079. Note that for the locals of Ilam District, if the issue is not subscribed by the early closing date, the issue can be extended till 21st Poush. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 50 Crores of which 10% i.e. 5,00,000 unit shares worth Rs. 5 crores have been allocated to project-affected locals of Illam District. Also, 10% of the company's issued capital i.e. 5,00,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 50,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today. The promoter-public ratio after this IPO will be 80: 20.
The minimum application quantity to be applied for both project-affected locals and Nepalese citizens working abroad is 10 units while the maximum quantity is 20,000 units.
Sanima Capital Limited is appointed as the issue manager.
Click here for the offer letter
| Supermai Hydropower Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount |
| Total Capital | 100% | 5,000,000.00 | 500,000,000.00 |
| Total Issue (Project-affected Locals) | 10% | 500,000.00 | 50,000,000.00 |
| Total Issue (Nepalese citizens working abroad) | 1.00% | 50,000.00 | 5,000,000.00 |
| Issue Manager | Sanima Capital Limited | ||
| Issue Open Date | Mangsir 21 | ||
| Issue Closing Date (earliest) | Poush 06 | ||
| Issue Late Closing Date (for locals only) | Poush 21 | ||
| Minimum Application | 10 | ||
| Maximum Application | 20,000 | ||
Capital Structure:
| Authorized Capital | 50,00,00,000 |
| Issued Capital | 50,00,00,000 |
| Current Paid-Up Capital | 40,00,00,000 |
| Capital after IPO Issuance | 50,00,00,000 |
Shareholding Structure:
| Number of Shares | Amount | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 4,000,000.00 | 400,000,000.00 | 80% | Already issued |
| Project-Affected Locals | 500,000.00 | 50,000,000.00 | 10% | To be issued |
| General Public (Including Nepalese citizens working abroad) | 500,000.00 | 50,000,000.00 | 10% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Dinesh Kumar Bartaula | Chief Executive Officer |
| Mr. Ashok Kumar Khadka | Chairman |
| Mr. Buddhi Bahadur Thapa | Director |
| Ms. Sabita Bartaula | Director |
| Mr. Nawaraj Raut | Director |
| Mr. Kailashman Rajbhandari | Director |
| Mr. Diwash Lal Maskey | Director |
Project Information:
| Name of Project | Supermai Jalvidhyut Pariyojana |
| Type of Project | Run-of-River |
| Installed Capacity | 7.8 MW |
| Electricity Generation License received | Falgun 30 2073 |
| Generation Valid Date | Falgun 29, 2108 |
| RCOD | Shrawan 01, 2077 |
| Total Cost | Rs. 1.48 Arba |
| Cost per Megawatt in Rs. | 19,08,48,205 |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078/079 (Q4) | 2079/80 | 2080/81 | 2081/82 | |
| Total Paid-Up Capital ('000) | 395,000.00 | 400,000.00 | 400,000.00 | 400,000.00 | 500,000.00 | 500,000.00 | 500,000.00 |
| Reserve & Surplus ('000) | 28,782.00 | 46,171.00 | 123,022.00 | 85,794.00 | 121,831.00 | 154,553.00 | 204,671.00 |
| Debt ('000) | 1,055,780.00 | 1,008,920.00 | 941,490.00 | 926,090.00 | 791,490.00 | 712,345.00 | 616,700.00 |
| Revenue ('000) | 217,834.00 | 211,360.00 | 245,414.00 | 86,810.00 | 252,776.00 | 260,360.00 | 260,360.00 |
| Interest Expenses ('000) | - | (97,128.00) | (69,078.00) | (23,714.00) | (63,326.00) | (56,994.00) | (49,343.00) |
| Net Profit ('0000) | 46,192.00 | 46,322.00 | 123,971.00 | 42,829.00 | 118,809.00 | 132,722.00 | 140,117.00 |
| Earnings per share (Rs.) | 11.58 | 11.58 | 30.99 | 10.71 | 23.76 | 26.54 | 28.02 |
| Net worth per share (Rs.) | 107.29 | 111.54 | 130.76 | 121.45 | 124.37 | 130.91 | 140.93 |
| Debt-Equity (times) | 2.49 | 2.26 | 1.80 | 1.91 | 1.27 | 1.09 | 0.88 |
| Return on Equity (%) | 1.09 | 1.04 | 2.37 | 0.88 | 1.91 | 2.03 | 1.99 |
ICRA Nepal:
ICRA Nepal has upgraded the issuer rating of Super Mai Hydropower Limited to [ICRANP-IR] BBB- (pronounced ICRA NP issuer rating triple B minus) from [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus). Issuers with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations.
Credit strengths
- Experience of promoters in the hydropower sector.
- Consistent operational performance.
- Adequate return indicators and comfortable coverage ratio.
- Low tariff risk because of long-term PPA at predetermined tariffs and escalations.
Credit challenges
- Low offtake risk, although provision of a 10% reserve margin for the project can impact revenue profile.
- High hydrology risk due to lack of deemed generation clause in PPA.
- Concentration risk and natural calamities risk.
